Transcript GROUP TWO SUPPORT TO MICRO FINANCE INSTITUTION (MFI)

GROUP TWO
SUPPORT TO MICRO FINANCE
INSTITUTION (MFI)
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ISSUE ONE: Institution
Building Among MFBs
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• Facilitators:
1. Mrs. A.U. Ufaruna M&E Specialist (RUFIN
CPMU) (Lead Facilitator)
2. Mr. Adedeji Y. Adesemoye, Asst. Director OFRD
(CBN)
3. Dr. M.N. Kolo, Programm Manager NACRDB
4. Mr. Femi Olaleye, RUFIN CPMU
• Rapporteurs
• Lizzy Igbine (Mrs.) Niwfa
• Christ John Mamuda (JP)
• Ernest Awakessien
• Group Membership 32
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1. The MFBs in Nigeria require further capacity building to deliver on
their services and reach more clients (revitalization).
2. Criteria for MFB participation:
• Must be registered with CBN.
• Must be rural based.
• There must be evidence of outreach to the rural poor.
• Must be RUFIN project states.
• Must show commitment to participate in RUFIN
• Must be a viable MFB (outstanding performance that represent best
practice.
3. The group agreed that to mitigate the uneven distribution of
MFBs, the following should be done.
• A. Non bank financial institutions and cooperative should be
encouraged to spring up in those areas where MFBs are none
existent.
• B. MFB should partner with MFI/cooperative to create presence in
those areas.
• C. CBN should evolve friendly policies and an enable environment
for more MFB to spring up.
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The Technical Support for MFB in three major areas:A.
Technical
Capacity Building & Training
B.
Structural
Equipments & Logistics
C.
Financial
Linkage to refinance windows
Recommended Training Areas:
1.
Corporate governance.
2.
Investment/Treasury Operations
3.
Deposit Mobilization
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Marketing System.
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Accounting System.
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Client Relationship Management.
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Product Development.
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Cash Flow Analysis Technique
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Credit Management.
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The role of Stakeholders
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MFBs
Develop relevant products.
Beneficiaries
Patronage
Service Providers
Relevant trainings
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6. The proposed amendment for RUFIN
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RUFIN should promote financial literacy for
the rural populace.
• RUFIN should promote support for consumer protection
and Micro-finance Banks service.
• RUFIN should promote a partnership model between
MFB and cooperatives, groups and unions in rural areas.
7. The Expected result
• MFBs would have been capacitated to go into rural
areas to deliver financial services to more clients.
• Access to financial services (savings/credit) would have
been enhanced in rural areas.
• Food Security would have been increased.
• Increase to means of livelihood and wealth creation in
rural areas.
• Increase client outreach would have been achieved by
MFBs.
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ISSUE TWO: Capacity Building among Non
Bank MFI
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Non bank MFI are NGOs, traditional money lenders,
cooperatives, credit unions, & self help groups, that
are involved in the services of savings mobilization and
lending in rural areas.
Things that should qualify organizations to be
RMFIs are:
1. Legally registered under the appropriate law.
2. Must be in the services of savings, borrowing and
lending money in micro form to its rural clients and
members.
3. May be membership base.
4. Must be rural base.
5. May be NGO type
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3. The capacity building critical to RMFI:
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Leadership/corporate governance training.
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Savings mobilization.
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Product development.
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Record/Book keeping for RMFI.
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Membership mobilization for RMFI.
• Proposal writing.
• Partnership development process and linkages
framework etc.
4. The Technical Support for RMFI
• Sensitization/awareness campaign for RMFI on their
critical roles.
• Advocacy for support for RMFI.
• Operating manuals/standards.
• Provision of information on Training available from
development partners.
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5. The Roles of Stakeholders In the implementation of this activity:
• Identified Stakeholders are RUFIN, MFI, MFB, NGOs.
• The stakeholders should serve as link with rural populace, farmers/women
groups.
• The MFB & MFI should have relevant products for their clients.
• Beneficiaries should increase patronage (savings/loan).
6. Proposed amendment for RUFIN
• Develop manuals (Templates) on operations for RMFIs.
• RUFIN should commission a study on the activities of RMFI to understand
their challenges/constraints and develop appropriate intervention areas.
• Develop a model for them to key in.
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Expected Results:
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Building sustainable institutions providing sustainable services.
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Building micro entrepreneurs with access to finance.
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Increased income/asset and wealth creation for the rural populace.
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Achievement of the MDG goal of eradicating extreme poverty.
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Fostering gender equality and empowerment of disadvantage groups.
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Improve standard of living.
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Rural transformation.
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ISSUE THREE: SUPPORT FOR NACRDB
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The current areas of operations are:
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Areas where support is necessary for NACRDB are:
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Provision of affordable credit to the less privileged.
Acceptance of savings deposit.
Encouraging the formation of Cooperative societies.
Inculcation of banking habits at the grassroots.
Training for desk officers on RUFIN project.
Infrastructural i.e. computers.
Logistics and project vehicles.
Increased funding for the bank by paying up equity for improved outreach.
NACRB should do more micro-lending.
3. The Type of Support that are relevant:
Infrastructural
equipments
Logistics
vehicles
Training
for staff
Expected Results
1. Effective & efficient service delivery to the target beneficiaries.
2. Positive impact on the target beneficiaries.
3. 70 – 85% repayment target will be achieved.
4. Increased beneficiaries standard of living.
5. There will be improvement on the income of the target beneficiaries.
6. Increase client outreach.
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ISSUE FOUR: IMPLEMENTATION, SUPPORT,
REGULATION AND SUPERVISION FOR MFBs
• ISSUES FOR DISCUSSION
• 1. The supervision for MFBs should be under the CBN, more
CBN branches be strengthen to carry this function.
• 2. The current CBN regulatory model should be re-strengthened
to ensure efficiency and effectiveness of MFBs.
• 3. To sanitize the widespread of distress of MFBs, it is herby
resolved that:
• A. Policies should be evolved to ensure good corporate
governance in all the licensed MFB.
• B. The CBN should ensure enforcement of the prudential
requirement guidelines to protect depositor’s fund.
RUFIN/CBN should facilitate continuous capacity building and
development in the subsector.
• C. The board/management of MFBs should be suitably qualified,
experienced and certified micro finance practitioners.
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4. The Technical Support required to achieve the goals of this
sub-component
• Trainings
• Corporate Governance
• Credit Process
• Banking/Treasury Operations.
• Investment/Finance.
• Savings and deposit mobilization.
• Risk Management
• ICT/MIS Platforms.
• Accounting System/Records
• Internal Audit/Control
5. The roles of stakeholders in the implementation of this activity:
1. Formation of a National Micro finance policy consultative
forum.
2. Provision of private sector driven credit Bureau to mitigate
credit risk of MFBs.
3. Establishment of a MFB umbrella association.
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6. Proposed amendment to RUFIIN
• Advocacy on financial literacy and consumer protection.
• Promotion of good corporate governance by MFB/MFI.
• Promotion of collaboration between MFBs with
development partners to leverage on existing
knowledge/support.
• Expected Result
• 1. Access to sustainable financial services to
rural/vulnerable populace.
• 2. Achievement of MDGs goals and eradication of
extreme poverty.
• 3. Enhance households to improve their nutrition,
children education, health and general living standards.
• 4. Mainstreaming the informal sector of the economy
into the national financial system.
• 5. Contribution to rural transformation.
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